Michigan Lawmakers Introduced Insurance Statute Reform
Proposed legislation seeks to clarify liability rules during insurance company divisions for Michigan policyholders.
Updated on Sept. 28, 2026 in Insurance
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Michigan lawmakers introduced House Bill 6375 to update the state's insurance division statute, aiming to resolve potential coverage disputes. The change would only take effect if a companion bill, House Bill 6347, is also signed into law.
Why it matters
Clearer language regarding entity liability helps protect policyholders by preventing ambiguity during complex insurance company splits. These reforms address legal gaps identified in the framework originally established by Public Act 421 in 2018.
The proposed legislation amends Section 5511 of the Michigan Insurance Code to replace ambiguous pronouns with noun phrases. Whether these changes will ultimately be enacted remains unknown, as the bill requires the passage of House Bill 6347.
The players
Representative Carter
A Michigan state representative who serves as an author of House Bill 6375.
Representative Wozniak
A Michigan state representative who serves as an author of House Bill 6375.
The details
House Bill 6375 clarifies liability by replacing generic pronouns like 'it' and 'its' with specific noun phrases when describing insurer divisions. Additionally, the bill updates a cross-reference to the Uniform Commercial Code from MCL 440.9994 to MCL 440.12501. These technical adjustments are intended to ensure legal precision during corporate restructuring.
Timeline
Public Act 421 established the original insurer division framework in 2018.
House Bill 6375 was introduced in the Michigan House on September 24, 2026.
Money Landscape
This proposal updates the regulatory infrastructure established by Public Act 421 of 2018. It marks a legislative effort to refine how the state governs complex insurance company divisions.
Policyholders should monitor these legislative changes as they may influence how companies manage liability and coverage during future corporate divisions. Consult with a qualified insurance professional if you have concerns regarding how your provider's corporate structure affects your coverage.
The takeaway
The proposed bill aims to reduce legal ambiguity for insurance consumers during company restructuring. Residents should monitor the progress of House Bill 6375 through the Michigan Committee on Finance for updates on potential impacts to state coverage standards.
Further reading
For more on state-level consumer protections, visit our Insurance section.
Source note: This article includes information reported by Insurance Business.
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Should states prioritize simplified legal language to reduce potential disputes in insurance company divisions?
